The Nigeria-focused business agreed a $300m debt-for-equity deal after defaulting on its $15m loan interest payment, leaving equity holders with just 11 per cent of share capital and prompting its share price to tumble nearly 30 per cent.

Its share price had already taken a hammering after it fired its chief executive Osman Shahenshah and chief operating officer Shahid Ullah for gross misconduct.

But the company said it was confident it would be able to push on under the new terms, and build a stronger foundation for the future.

Chairman Egbert Imomoh said: "Afren shareholders have been through an incredibly difficult period in the life of the business, and the next steps, while complex, are essential if we want to successfully emerge from this period on a value growth trajectory.

“I am clear that the only viable course of action for the business is to progress through the proposed refinancing process; it offers the only secure route to relieve the unsustainable debt burden, and support Afren's recovery. "

New chief executive Alan Linn added: “I believe Afren has significant potential within its core Nigerian portfolio which will enable us to successfully emerge from this period and provide growth to all shareholders.

“The recommended restructuring, combined with the open offer, is the only viable opportunity for our shareholders to realise any value from their investment in the company.

“I urge all Afren shareholders to recognise this fact and vote to retain their active interest in the company by voting in favour of the proposed debt restructuring and refinancing."